Wildfires nearly shut down Alberta’s energy facilities in 2023 – but instead, they proved a point: smart risk planning works. Now, that’s changing how insurers view high-stakes clients.
Recent disaster seasons have threatened billions in oil and gas infrastructure. But thanks to proactive planning – accurate property valuations, boots-on-the-ground assessments, and clear hazard mapping – damage was minimal.
That foresight turned a potential catastrophe into a case study in resilience, strengthening insurance negotiations rather than sabotaging them. In a volatile market shaped by climate shocks and rising rebuild costs, this kind of preparation is becoming non-negotiable.
Andrew Barker (pictured), managing partner at Iridium Risk Services, works with energy companies to sharpen their risk profiles – not just to survive disaster, but to stand out. With decades in risk advisory and a deep client base across Canada, he helps firms turn risk data, ESG performance, and operational tech into compelling narratives insurers can trust.
“You’ve got to show you’ve got a handle on the safety piece,” Barker said. “And when things go wrong, show what you’ve learned.
“The biggest thing that we can do is work with our clients on the risk management piece.”
That 2023 wildfire season put those strategies to the test. Though evacuations and shutdowns occurred, facilities emerged largely unscathed – not by chance, but by design.
“The good news was [that] a lot of the risk management strategies that they had been deploying really came into focus and actually worked,” Barker said. “The cutbacks on those facilities are so large that the fires never actually threatened the facility from a physical damage perspective.”
That experience reshaped renewal conversations. What could have been a catastrophic insurance cycle became a proof point.
“We came out as a great news story when we were talking to insurers at clients’ following renewals,” Barker said. “It could have been way worse than it actually was.”
Still, insurers remain selective, especially in high-risk sectors like oil and gas. So, how can companies stand out? According to Barker, it's about more than just surviving disaster – it's about data-backed proof of safety and ESG performance.
"Differentiation is key," he said. "The more a client can express the investments they're making into safety and ESG, it's table stakes for insurers to consider you a risk."
In Canada, where regulatory compliance is already baked into operations, Barker said the challenge lies in communication. Clients have followed robust safety protocols for years – it just wasn't part of the pitch.
"Although it was a hot topic, our clients have said for years that they've been doing these things, it just wasn't spotlighted," he said.
Iridium now works with clients to change that. They craft narratives around safety metrics, contractor oversight, and vendor management to demonstrate command of risk.
"We talk about safety statistics. We talk about safety initiatives. We talk about how they're performing in terms of managing their vendors and their contractor base," Barker said. "You've got to show that you've got a handle on the safety piece."
Owning shortcomings is part of that narrative. Barker insists that honesty beats spin.
"We don't encourage our clients to hide behind a bad year," he said. "Let's talk about what lessons [we] learned."
Those lessons are shared across departments – legal, operations, and safety. Everyone has a role in de-risking the business and convincing underwriters that the organization learns and adapts.
"Underwriters want to see that," he said. "They're in the business of seeing losses, but they don't want to see that you have a loss, and nothing's been done."
Ironically, some operational shifts – smaller on-site teams, longer maintenance cycles – are making things safer, not riskier. Barker pointed to technology as the difference-maker.
"Modernization of operations has led to a much safer operation," he said. Automation, smart monitoring, and alarm systems allow staff to act surgically, not reactively. "Now our clients have rolled out a lot of technology; they're getting instant alarms. Now you can prioritize sending your staff."
That shift is reshaping how insurers evaluate risk.
"One of the stories that we tell our insurers is, what kind of technology is our client deploying to make their operation better and safer?" Barker said. "I think it's actually very much improved our clients' risk profile."
However, even well-prepared companies are left considering alternatives when the commercial market still won't bite. Captives and parametric insurance have generated buzz – but little traction.
"There was a lot of talk about [captives] going to be a bit of a game changer," Barker said. "We haven't seen that mass." Many who would benefit already have captives; others find the economics don't add up.
As for parametrics? "It's a product that's available, but does it make commercial sense? And I would say the answer to date is no."
That could change, but for now, Barker sees more appetite returning to the traditional market.
“I think more capacity has kind of relaxed on the oil and gas, the ESG angle, and so we've seen less of a constraint from that perspective,” he said. “We're seeing a pretty competitive market right now, and we're seeing insurers want to deploy more capacity, they want to grow.”
What hasn’t changed is the need to be ready before the fire, figuratively and literally.
“It’s something we talk about with clients,” Barker said. “Does it make sense for them? Is it the right solution? Sometimes the answer is no. But that conversation is one we’re always having.”
